DOL Opinion Letter Provides a Compliance Roadmap for Including Bonuses in Overtime Calculations

In early 2026, the U.S. Department of Labor’s (DOL) Wage and Hour Division issued six opinion letters providing guidance on the federal labor standards under the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act. In one of these letters, the DOL addressed a key topic for employers: how and when bonuses are incorporated into overtime calculations. In particular, the DOL explained the circumstances under which bonus payments may be excluded from an employee’s regular hourly rate... By: Troutman Pepper Locke